Water districts optimistic CA will exempt them from taxes

CEBU, Philippines - The Philippine Association of Water Districts is optimistic that the Court of Appeals will rule in their favor on their bid to be exempt from paying income tax.

“We have been fighting for this and we are optimistic that we will win the case,” said PAWD president Delfin Hilario in press conference.

PAWD, the umbrella organization of about 500 water districts in the country, is holding a three-day national convention at the Waterfront Cebu City Hotel.

The convention is being attended by at least 1,000 water district officials, local and foreign suppliers, water utilities experts, engineers, traders, and innovators.

The Regional Trial Court had ruled in PAWD’s favor but the Bureau of Internal Revenue raised the issue to the Court of Appeals. PAWD argues that it should be exempt from paying the income tax because water districts are rendering basic services to the people.

Hilario said majority of their members are still continuing paying taxes while several have seized to do so pending the outcome of the case. Should PAWD loses, water districts would have to pay 32 percent of their net income as income tax, as provided for by law.

Juan Montecillo, chairman of the Metropolitan Cebu Water District, stressed water coming from the faucet is “far more healthy” than pure or distilled water.

“Our water is healthier than pure or distilled water because the latter eliminates all the minerals that our body needs. Especially in Cebu, our water source is limestone- based, which is rich in calcium,” Montecillo said. —Mitchelle L. Palaubsanon/JMO   (THE FREEMAN)